RDC-7 fails to return P4M balance to BOT

The Regional Development Council failed to return to the Bureau of Treasury (BOT) at least P4.4 million balance of the then Metro Cebu Development Project I and II despite the completion of the projects in 2000.

The Commission on Audit, in its Annual Audit Report for 2005, said that the unexpended balance of P4.614 million was not remitted to the BOT despite a MCDP resolution.



The resolution outlined the turnover of three accounts under MCDP - Central Visayas Project Office, P35,046,02; Central Visayas Water and Sanitation Project, P90,576.74; and MCDP II, P4,488.697.89 - to the RDC accountant.

The COA observed that the money deposited in three accounts did not earn any interest since 2000 and was not used for any government project.

But the RDC accountant explained that they did not remit the bank balances due to the verbal instruction from the regional director that the MCDP II fund balance would be used by the MCDP III to pay for the road project and other works of MCDP I and II.

But due to the absence of further instruction to transfer the amount to MCDP III, the fund balance remained un-remitted to the BOT.

The COA recommended that the management should obtain a resolution from RDC authorizing the remittance of P4.614 million to the BOT.

It said that the draft resolution should also indicate the signatories of the current accounts.

The COA report also mentioned that the management failed to adhere strictly to the provision of a memorandum order in 1988 which resulted to the overpayment of honoraria to private sector representatives worth P59,850 as of December 31, 2005.

The RDC used as attachment a special order from the National Economic Development Authority which authorized the council to increase the honoraria of public sector representatives of P1,000 for every full council, executive, sectoral, committee and special committee meeting of the RDC.

The NEDA special order also authorized an additional honoraria of P1,000 for every meeting outside their hometown provinces.

However, COA said that the NEDA special order is contrary to the provisions of the memorandum order authorizing the payment of honorarium to representatives of RDC's non-government organizations during meetings.

The order allowed P1,000 and P500 honoraria for the chairman and co-chairman and members of RDC. The authority, however, does not apply to non-government officials and employees.

As computed, the P94,500 being paid to NGO representatives from January to September 2005 had excessed P59,850.

It was recommended that the management should submit an authority from the Department of Budget and Management otherwise a refund should be made for the excess amount. - Ferliza C. Contratista